TORONTO, Feb. 15, 2012 /CNW/ - IA Clarington (the "company") is
announcing that, as per its prospectus, the IA Clarington Aston Hill
Tactical Yield Fund (TSX: TYF.UN; the "Fund") will be converted into an
open-end mutual fund by way of a merger into the IA Clarington Tactical
Income Fund effective April 30, 2012. Investors should consider the
following items of importance related to this conversion:
Investors will receive continuity of investment management as Aston Hill
Asset Management Inc., lead by portfolio manager Ben Cheng, currently
manages both the Fund and the IA Clarington Tactical Income Fund. Both
funds follow similar investment strategies, although unlike the Fund,
the IA Clarington Tactical Income Fund does not use leverage.
On the conversion date, investments in the Fund will be converted into
investments of equal value in Series X units of the IA Clarington
Tactical Income Fund. The management fee and dealer compensation will
remain the same at a total of 1.65%. The company expects that the total
management expense ratio of the Series X units of the IA Clarington
Tactical Income Fund will be lower than that of the Fund.
For typical Canadian investors, the conversion of units from the Fund to
the IA Clarington Tactical Income Fund will be conducted on a
tax-deferred basis, so that it will not trigger a gain or loss for
Canadian federal income tax purposes. For non-Canadian or business
investors, different rules may apply.
The Fund will make a final distribution of realized capital gains and
income to investors on or about April 26, 2012.
Following conversion, investors will be able to redeem their investments
at the daily net asset value without brokerage costs.
Should an investor choose, prior to the conversion they will have the
right to surrender their trust units for redemption at an amount equal
to the NAV per trust unit on March 29, 2012. Investors must communicate
their intention to surrender their trust units at least 15 business
days prior to March 29, 2012. Investors who do not exercise this
redemption right can continue to sell their units through the
facilities of the TSX until shortly before the conversion date, and
redeem units of the IA Clarington Tactical Income Fund after the
About IA Clarington
IA Clarington Investments Inc., a subsidiary of Industrial Alliance
Insurance and Financial Services Inc., markets a wide range of
investment products, including mutual funds and segregated funds
managed by leading portfolio advisors. The Company's philosophy is to
select outstanding money managers from across Canada and around the
world to manage its funds. IA Clarington managed more than $10 billion
in assets as at December 31st, 2011. www.iaclarington.com
SOURCE IA Clarington Investments Inc.
For further information:
Account Executive Equicom, a TMX Group Company
(416) 815-0700 ext. 251